USD/CHF and EUR/CHF rose to tactical highs. What's next?
GBP: more stimulus
GBP/USD has risen from 1.2940 to above 1.3000 in a strong bullish spike just now. That’s because the Bank of England expanded the quantitative easing beyond expectations. Specifically, the bong-buying program is increased by 150 billion pounds. The committee unanimously voted in favor of this measure with the strategic objective to keep the interest rate at 0.1%. The process of buying itself will take one year starting in January.
For the GBP, that’s definitely good news as the entire country is now in a partial lockdown, Brexit is moving slow, and the British economy is in an obvious slump.
In the meantime, the GBP keeps moving within a larger sideways channel between 1.2890 and 1.3070. The core of this channel is contained within narrower band 1.2940-1.3000 where 1.3000 is the key level – and the GBP has just stepped over it. Now, you may take the upside of the larger channel of 1.3070 as the primary target for bulls.
During the daily press briefing of Andres Manuel Lopez Obrador, it was announced that Mexico will receive 1.4 million doses of the vaccine by the end of January. Is that optimistic enough for the peso?
The US unemployment claims are announced on Thursday at 15:30 MT time.
OPEC will hold a meeting on March 4, where it should announce its decision on further oil output.
The risk-on is back on the market as investors focus on the projections for a stronger-than-expected economic rebound and the Fed’s pledge to prolong support for the rest of the year.
The Reserve Bank of Australia will make a rate statement on March 2, at 5:30 MT time.